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AgFeed Industries, Inc. Announces Second Quarter 2009 Financial Results.

Article Excerpt
NEW YORK, Aug. 11 /PRNewswire-Asia/ -- AgFeed Industries, Inc. , one of the largest commercial hog producers and the largest animal nutrients company in China, today announced financial results for the second quarter and first six months of 2009:



-- Revenue of $38.5 million and $71.9 million, up from $35.6 million and $47.8 million for the second quarter and first six months of 2008, respectively. -- Income from operations of $2.3 million and $5.4 million, compared to $8.8 million and $10.5 million for the three and six month periods of 2008, respectively. -- Net Income of $1.2 million and $4.2 million for the three and six month 2009 periods, compared to $3.9 million and $4.8 million for the comparable 2008 periods. -- Earnings per share of $0.03 and $0.11 for the three and six month 2009 periods, compared to $0.12 and $0.16 for the comparable 2008 periods. -- Gross Profit of $5.2 million and $11.0 million, as compared to $11.0 million and $14.5 million for the second quarter and first six months of 2008, respectively. -- Balance sheet is strong; cash and cash equivalents on hand on June 30, 2009 was $30.9 million. -- Gross margins for the first six months of 2009 were 26.76% in the Company's animal nutrients business and 10.53% (an average price of $159.40 versus a cost of $142.40 per head) on the sale of 316,000 hogs in that business segment. Management Comments

Dr. Songyan Li, AgFeed's Chairman, commented that, "I am pleased to report on the progress we are making in implementing our previously announced strategic plan. Our second quarter results were stronger, in light of the challenges that we faced - the macro decline in the global economy, hog prices that dipped to a two-year low and the rising cost of corn, soy and fuel. In spite of this, our operating income was a healthy $2.26 million. Hog prices are generally beginning to firm and I believe we will see these prices rise about 15% in the short run and over 25% by 2010 from recent lows. In several key markets, we have already begun to see our hog prices rise significantly above the average national...

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